2024 Review of the Year

Since inception in 1885, Thomas Miller has strived to define excellence across insurance, professional and investment services. For more than 140 years we have managed complex issues, developed inventive solutions and built enduring relationships. Today we preside over a number of acknowledged market leading businesses.

'The Group’s core focus continues to be on our mutual management activities, supported and augmented by the continued development of the TM owned businesses to enhance the service we offer to the managed entities and generate additional returns for shareholders.'

 

Chairman's Statement

I begin my statement by noting that despite largely good performance overall from both our managed and owned businesses, disappointingly, we did not meet our profit expectations in 2024.

A significant contributing factor to the profit shortfall was income from management of the TT Club. While the Club is generally in very strong health, as a result of action the Club Board took in the year which impacted its financial performance, the incentive fee income to Thomas Miller was depressed. A significant proportion of our income from TT is based on a percentage of the Club’s net result. So when the Club does well financially, Thomas Miller benefits, and vice versa. Since this arrangement has been in place, Thomas Miller has been well rewarded on the whole and we expect our income from the Club to increase in 2025 and beyond as a result of the measures the Club is taking.

Other material contributing factors to the Group’s result include the performance of our Fixed Premium P&I business which is now closely aligned with the UK P&I Club as its sole capital provider.

On a positive note, good progress has been made in improving the performance of those businesses that have, in recent years, impacted the Group’s profitability. Looking forward, we anticipate more stable and higher levels of profitability in 2025 and beyond.

More detail on performance is provided in Hugh’s CEO Report.

A new vision for the Group

As mentioned in last year’s report, in 2024 the Board agreed a new vision for Thomas Miller, which will guide the Group for the next five years and beyond. The vision recognises the contribution to the Group’s success, the mutual management businesses, and our owned business make, in their different ways.

The vision places our Club management businesses at the centre of our focus, recognising their fundamental importance to the future of the Group. The service we provide to our Clubs and their Members is under closer scrutiny from Club boards and also from regulators around the world.

Our Clubs’ environments are becoming more challenging, not just competitively, but also as they seek to respond to the opportunities technology presents and we must raise our game to assist them, by being the best partner we can be. To do this we will continue to invest in our people, providing the tools and training they need to deliver the highest levels of service, as well as investing in technology, in particular, developing our AI capabilities.

Our mutual management activities will be supported and augmented by the continued development of our owned businesses to enhance the services we offer to the Clubs and generate additional returns for our Shareholders. The Board will continue to invest in these businesses to ensure they are given the opportunity to thrive.

We have, of course, seen significant geo-political change on a global level over recent months in particular and must recognise Thomas Miller - and the businesses we manage - are currently operating in a very uncertain world. We will continue to apply due caution in managing and developing the Group going forward.

Governance structure review

In 2025, we will undertake a review of our governance structure. Our current arrangements have been effective in overseeing the executive leadership and Group’s performance, but were designed for a different phase of Thomas Miller’s life. Our new vision for Thomas Miller brings with it the opportunity to review the structure to ensure it is fit to oversee delivery of the Vision. I look forward to reporting to you on this in next year’s report, if not before then.

In the meantime I thank Bob Cowdell, the Senior Independent NED, who chairs the Remuneration and Nominations Committee and until June 2024 chaired the Audit and Risk Committee. I also thank James Quin, the second independent NED, who replaced Mr Cowdell as Chairman of the Audit and Risk Committee in the year. Grahaeme Henderson, the UK P&I Club’s Representative Director, stepped down from the Board in 2024 and we thank him for his wise counsel and contribution. Grahaeme was replaced by Markos Nomikos in mid-2024, although since the year end Markos has stepped down due to other commitments.

I should note here that in 2024, I stepped down from my role as CEO of TT Club. I remain a Director on the main TT Club Board, TT Bermuda, for a short period to support Kevin King who succeeded me as CEO, and Morten Engelstoft, who has recently taken over as Chair of the Club. As I transition out of this executive role, I am increasingly focusing on a more non-executive position as Chairman of Thomas Miller Holdings

St Mungo’s

Collaborating with a corporate charity partner is an important strand of our Corporate Social Responsibility programme, ‘Be the Difference’.

We are in the second year of our two-year partnership with St Mungo’s and I am pleased to see how engaged so many of our employees both in London and overseas have been in supporting the charity as evidenced by their fundraising and volunteering. The issue of homelessness has clearly struck a chord with employees all around the world. St Mungo’s is also delighted by the partnership.

I will end by thanking all our employees across the Group for their hard work and contribution to the Group during the year.

 

Download Thomas Miller's Review of the Year below.